Accenture Quarterly Results, Why IT Stocks Are Falling? Indian IT stocks came under heavy selling pressure on Friday (September 26) after Accenture's quarterly
results and rising concerns over H-1B visa fee hikes. At 2:30 PM, the Nifty IT index was the top loser, down 2.45 per cent to quote at 33,720. Today is the sixth consecutive session when the IT index has moved southward. At the time of writing this report, all the 10 constituent of the IT index traded in the red. Individually, Oracle Financial Services Software was the biggest loser, diving 4 per cent to Rs 8,552.50. It was followed by Coforge and Persistent Systems -- each down more than 3 per cent at Rs 1,541 and Rs 4,947. The remaining 6 others Wipro, Infosys, TCS, LTIMindtree, Tech Mahindra, Mphasis and HCL Tech were down in the range of 2 to 3 per cent.
Accenture Quarterly Results
Today's sell-off in IT stocks came after Accenture, an IT services and consulting company with a significant workforce in India, reported a 7 per cent YoY rise in revenue to USD 17.60 billion in the June-August 2025 quarter.
The revenues reflect a foreign-exchange impact of about 2.5 per cent, Accenture, which follows a September-August financial year, said in a statement.
Accenture posted a 7 per cent increase in full-year revenues to USD 69.7 billion, and said it expects full-year revenue growth in the range of 2-5 per cent in local currency for FY26.
Accenture Guidance FY26
For the first quarter of FY26, Accenture gave a growth guidance of 1-5 per cent, expecting revenues in the range of USD 18.1-18.75 billion.
Post results, Motilal Oswal said that Indian IT services' revenue and commentary may mirror Accenture's performance and that the 2QFY26 is expected to be largely muted. It said that the key headwinds for Indian IT companies are:
1. Muted demand environment.
2. Deflation from Gen AI or other productivity gains.
3. Potential limits to onsite scope expansion in FY27E due to unpredictable H-1B programme.
Motilal Oswal added that valuations are currently palatable. The top 4 IT services stocks are trading at their 10-year average P/E and ~13 per cent discount to 5-year average P/E.
Notably, the performance of Accenture, which provides strategy and consulting services, is considered a benchmark for Indian IT companies. Accenture is a major player in the IT services industry. Accenture has a good chunk of employees in India.
Nuvama said that Accenture's FY26 revenue growth outlook of 3 to 6 per cent, reflecting continued enterprise investment in strategic priorities and cost-optimisation. It said that growth was driven by strong Gen AI performance.
FY26 guidance is in line, the brokerage said, adding that it sees 1-105 per cent headwind from the US Federal business.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
